BOMB-DAMAGED and derelict parts of a Pimlico estate are to undergo a massive revamp.

Work has begun on a £10.1million scheme to revive the historic Peabody Avenue estate.

Two residential buildings and a block of garages at the south end of the estate will be demolished to make way for new housing, which is due to include 38 homes for rent and 18 for shared ownership, as well as a community hall.

The existing City Guardians office will be converted into a new three-bedroom family home.

Residents in five flats on the estate will be temporarily re-housed while the work is carried out.

Improved play and garden spaces will be created for older and younger children, the tenants' association will be given an office and the whole estate will be substantially re-landscaped.

Phyllis Murphy, who has lived in Peabody Avenue for more than 40 years, said: "The improvements will make a fantastic difference. I've brought my children up here and my grandchildren are being brought up here.

"There's a lovely family feeling here."

Peabody Avenue and Abbey Orchard Estate suffered significant bomb damage during the Second World War, with four blocks lost along Peabody Avenue and one in Peabody Close.

Despite being heavily damaged by bombs, other parts of the estate were not demolished at the time.

One building was declared unfit in 1993 and was vacated, and has been derelict ever since.

The work will be carried out by contractors Mansell, and the designs were drawn up by award-winning architects Haworth Tompkins.

Peabody's principal development manager, Claire Bennie, said: "Residents have collaborated closely with us and our designers to arrive at a beautiful modern building to enrich the conservation area, as well as new green spaces to add colour and wildlife to the estate."

Constructed in 1875, Peabody Avenue and Peabody Close form their own conservation area.

The build was approved by Westminster Council with support from English Heritage and City of Westminster Housing Department.

Work is due to be completed by February 2010.